<PAGE>
==========================
Seligman
Tax-Exempt
Series Trust
Mid-Year Report
March 31, 1995
==========================
Seligman JWS Monogram Logo Goes Here
<PAGE>
To the Shareholders
We are pleased to provide you with the Mid-Year Report for the Seligman
Tax-Exempt Series Trust--the California High-Yield and Quality Series, the
Florida Series, and the North Carolina Series--for the six-month period
ended March 31, 1995.
When we last reported to you at your Trust's year end, September 30, 1994,
municipal bond yields, as measured by the Bond Buyer 20-Bond General
Obligation Index, had increased by more than one full percentage point since
the previous January (since yields move inversely to price, prices during
this period declined). Yields continued to rise into the fourth quarter of
1994, hitting a high for the year of 7.06% on November 17. After months of
lackluster demand for municipal bonds, these levels, the highest since 1991,
began to attract both retail and institutional buyers. At the same time,
inflation fears began to subside as the economy exhibited signs of slowing.
The combination of increased demand and improving market sentiment marked
the beginning of a municipal bond market rally. Long-term yields began a
steady decline that continued into the new year. The Federal Reserve Board
provided an additional boost to the bond market recovery by once again
raising the federal funds rate on February 1, 1995. This action had a
positive effect on investor psychology by reinforcing expectations that the
Fed ultimately will achieve its goal of stable inflation and moderate
economic growth. By the end of the first quarter, the Bond Buyer Index had
declined from 6.71% on December 29, 1994, to 6.07%, exactly where it stood a
year ago on March 31, 1994.
Looking forward, your Manager is optimistic about the prospects for the
municipal bond market. The lack of supply of new issue municipal bonds
should continue to contribute to the positive performance of the municipal
market. Additionally, a moderating economy and a vigilant Federal Reserve
Board should keep inflation in check and prevent a repeat of the dramatic
increase in interest rates that characterized most of 1994.
Seligman Tax-Exempt Series Trust is well positioned to benefit from a
decline in long-term yields by being concentrated, generally, in higher
quality, long-term municipal bonds.
For any additional information about Seligman Tax-Exempt Series Trust, or
your investment in its shares, please write or call using the toll-free
telephone numbers listed on page 23 of this report.
By order of the Trustees,
/s/ William C. Morris
-----------------
William C. Morris
Chairman
/s/ Ronald T. Schroeder
-------------------
Ronald T. Schroeder
President
April 28, 1995
1
<PAGE>
Seligman Tax-Exempt Series Trust
<TABLE>
<CAPTION>
Highlights March 31, 1995
California California North
High-Yield Quality Florida Carolina
Series Series Series Series
<S> <C> <C> <C> <C>
Net Assets:
Class A (in millions) $47.5 $97.8 $49.1 $39.5
Class D (in millions) 0.8 1 0.4 1.2
Yield:*
Class A 4.86% 4.90% 4.61% 4.88%
Class D 4.06 4.12 3.9 4.34
Dividends:**
Class A $0.19 $0.18 $0.21 $0.20
Class D 0.157 0.144 0.175 0.171
Capital Gain Distributions** -- $0.06 $0.00 $0.01
Average Annual Total Return+
Class A
One Year:
With sales charge(1) 0.90% 1.88% 2.47% 2.91%
Without sales charge(2) 5.95 7.02 7.54 8
Five Years:
With sales charge(1) 6.63 6.64 7.07 --
Without sales charge(2) 7.66 7.69 8.11 --
Ten Years or since inception: 11/17/86 8/27/90
With sales charge(1) 9.08 8.53 6.84% 6.44%
Without sales charge(2) 9.62 9.05 7.47 7.59
Class D
One Year:
With CDSL(1) 4.09 4.83 5.63 5.99
Without CDSL(2) 5.09 5.83 6.63 6.99
Since inception February 1, 1994:(2) 1.22 (2.10) (0.84) (1.31)
</TABLE>
*Current yield representing the annualized yield for the 30-day period
ended March 31, 1995.
**Represents per share amount paid or declared in respect of Class A and
Class D shares during the six months ended March 31, 1995.
(1)Represents the average compound rate of return per year over the
specified period and reflects change in price and assumes all distributions
within the period are reinvested in additional shares; also reflects the
effect of the 4.75% maximum initial sales charge or contingent deferred
sales load ("CDSL") of 1%, if applicable. No adjustment was made to Class A
shares' performance for periods prior to December 27, 1990, in the case of
the Florida Series, and January 1, 1993, in the case of the California
High-Yield and California Quality Series, the commencement dates for the
annual Administration, Shareholder Services and Distribution Plan fees of up
to 0.25% of average daily net assets of each Series.
(2)Represents the rate of return as above, but does not reflect the
effect of the 4.75% maximum initial sales charge or 1% CDSL.
+At its discretion, the Manager reimbursed certain expenses and/or waived
all or portions of its fees for the Florida and North Carolina Series. This
has the effect of increasing each Series' total returns for all periods
presented.
2
<PAGE>
<TABLE>
<CAPTION>
California California North
High-Yield Quality Florida Carolina
Series Series Series Series
<S> <C> <C> <C> <C>
Net asset value per share:
Class A $6.39 $6.56 $7.60 $7.63
Class D 6.40 6.55 7.60 7.62
Maximum offering price per share:
Class A $6.71 $6.89 $7.98 $8.01
Class D 6.40 6.55 7.60 7.62
Moody's/S&P Ratings++
Aaa/AAA 10% 66% 73% 46%
Aa/AA 7 21 18 28
A/A 31 13 9 26
Baa/BBB 13 -- -- --
Non-rated 39 -- -- --
Holdings by Market Sector++
Revenue Bonds 67% 86% 59% 72%
General Obligation Bonds 33 14 41 28
Weighted Average Maturity (years) 15.1 21.8 17.6 22.1
</TABLE>
++Percentages based on current market value of long-term holdings.
Note: The yield has been computed in accordance with SEC regulations and
will vary, and the principal value of an investment will fluctuate. Shares,
if redeemed, may be worth more or less than their original cost. A small
portion of each Series' income may be subject to applicable state and local
taxes. A portion of each Series' income dividends may be subject to the
federal alternative minimum tax. Past performance is not indicative of
future investment results.
3
<PAGE>
<TABLE>
<CAPTION>
Portfolios of Investments March 31, 1995
CALIFORNIA HIGH-YIELD SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
<S> <C> <C> <C>
$ 710,000 Alameda, CA Community Improvement Commission Tax Allocation Bonds
(West End Community Improvement Project), 9.20% due 1/1/2016 NR/NR $ 749,618
1,000,000 Bakersfield, CA Hospital Rev. (Bakersfield Memorial Hospital), 6 1/2% due 1/1/2022 A/A 1,002,510
825,000 Barstow, CA Redevelopment Agency Tax Allocation Bonds (Central Redevelopment
Project), 7 5/8% due 8/1/2011 NR/NR 882,593
3,000,000 California Department of Water Resources Water System Rev. (Central Valley Project),
6% due 12/1/2020 Aa/AA 2,938,140
1,000,000 California Health Facilities Financing Authority Rev. Catholic Health Corporation
(St. Elizabeth Community Hospital Project), 6.30% due 11/15/2015 A1/A+ 976,250
1,500,000 California Pollution Control Financing Authority Pollution Control Rev.
(Pacific Gas & Electric Co.), 7 1/2% due 5/1/2016 A2/A 1,554,285
2,500,000 California Public Works Board Lease Rev. (Department of Corrections--Del Norte),
5 1/8% due 12/1/2008 A/A- 2,299,900
430,000 Chula Vista, CA Improvement Bonds (Assessment District No. 85-2),
7.60% due 9/2/2005 NR/NR 452,326
435,000 Chula Vista, CA Improvement Bonds (Assessment District No. 85-2),
7.60% due 9/2/2006 NR/NR 457,315
235,000 Corona, CA Redevelopment Agency (Residential Mortgage Rev.), 9% due 11/15/2012 NR/AA 237,301
1,000,000 Cupertino, CA Certificates of Participation (Cupertino Public Facilities Corporation),
7 3/4% due 7/1/2016 NR/NR 1,059,640
180,000 Fairfield, CA Improvement Bonds (Smith Ranch Assessment District),
7.35% due 9/2/2003 NR/NR 185,400
160,000 Fairfield, CA Improvement Bonds (Smith Ranch Assessment District),
7.40% due 9/2/2007 NR/NR 164,800
1,000,000 Folsom, CA Special Tax Bonds (Willow Creek Community Facilities District No. 1),
8 1/4% due 12/1/2006 NR/NR 1,065,590
1,000,000 Fontana, CA Certificates of Participation (Police Facility Project), 7 3/4% due 4/1/2016 Baa/NR 1,053,190
500,000 Los Angeles, CA Certificates of Participation (Convention & Exhibition Center
Authority), 7 3/8% due 8/15/2018 Aaa/AAA 554,720
500,000 Los Angeles, CA Community Redevelopment Agency Multi-Family Housing Rev.
(Grand Central Square), 5.85% due 12/1/2026* A/A 443,785
1,300,000 Los Angeles, CA Wastewater System Rev., 7.10% due 6/1/2018 A1/A 1,365,819
1,000,000 Los Angeles County, CA Certificates of Participation (Sheriff's Training Academy
and San Fernando Courthouse), 7 3/4% due 7/1/2016 NR/NR 1,059,400
1,000,000 Los Angeles County Transportation Commission, CA Sales Tax Rev.,
7.40% due 7/1/2015 A1/AA- 1,068,410
400,000 Milpitas, CA Local Improvement District No. 9 (Milpitas Business Park),
7 1/4% due 9/2/2007 NR/NR 402,564
400,000 Milpitas, CA Local Improvement District No. 9 (Milpitas Business Park),
7.30% due 9/2/2008 NR/NR 402,684
250,000 Milpitas, CA Local Improvement District No. 9 (Milpitas Business Park),
7.30% due 9/2/2011 NR/NR 249,975
______________
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
4
<PAGE>
Portfolios of Investments (continued) March 31, 1995
CALIFORNIA HIGH-YIELD SERIES (continued)
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
$ 100,000 Oxnard, CA Certificates of Participation (River Ridge Public Parking Project),
9.10% due 12/1/2003 Baa1/BBB+ $ 105,156
1,000,000 Oxnard Union High School District, CA Certificates of Participation
(Union High School), 7.70% due 11/1/2019 NR/NR 1,130,540
750,000 Petaluma, CA Community Development Commission Tax Allocation Bonds
(Central Business District), 9.30% due 5/15/2010 Baa1/NR 759,382
2,250,000 Pleasanton, CA Joint Powers Financing Authority Reassessment Rev.,
6.15% due 9/2/2012 Baa/NR 2,195,888
1,020,000 Rancho Mirage, CA Improvement Bonds Assessment District No. 22-85
(Frank Sinatra Drive Extension), 8.30% due 9/2/2008 NR/NR 1,055,843
1,200,000 Rancho Mirage, CA Improvement Bonds Assessment District No. 22-85
(Frank Sinatra Drive Extension), 8.30% due 9/2/2011 NR/NR 1,241,232
5,000 Riverside County, CA (Single Family Mortgage Rev.), 10 1/2% due 9/1/2014 NR/BBB+ 5,234
2,000,000 San Francisco, CA State Building Authority Lease Rev. (State of California Dept. of
General Services Lease), 5% due 10/1/2013 A/A- 1,726,140
3,000,000 San Joaquin Hills, CA Transportation Corridor Agency (Orange County
Senior Lien Toll Road), 6 3/4% due 1/1/2032 NR/NR 2,920,230
1,500,000 Santa Barbara, CA Certificates of Participation (Harbor Improvement Project),
7.70% due 10/1/2016 NR/NR 1,560,045
1,000,000 Santa Clara, CA Improvement Bonds Project No. 186 (Santa Clara Convention Center
Complex), 7.10% due 9/2/2011 NR/NR 1,030,000
1,500,000 Santa Cruz, CA Hospital Rev. (Dominican Santa Cruz Hospital), 7% due 12/1/2013 A1/A+ 1,541,745
2,000,000 Santa Margarita, CA Water District G.O.'s, 7 1/2% due 11/1/2005 NR/NR 2,033,940
1,000,000 Southern California Public Power Authority Power Project Rev. (Multiple Projects),
6% due 7/1/2018 A/A 962,330
3,000,000 Southern California Public Power Authority Power Project Rev. (Multiple Projects),
6% due 7/1/2018 Aaa/AAA 3,140,970
940,000 Stanislaus, CA Waste-to-Energy Financing Agency Solid Waste Facility Rev.
(Ogden Martin System of Stanislaus, Inc. Project), 7 1/2% due 1/1/2005 NR/BBB+ 978,719
785,000 Stanislaus, CA Waste-to-Energy Financing Agency Solid Waste Facility Rev.
(Ogden Martin System of Stanislaus, Inc. Project), 7 5/8% due 1/1/2010 NR/BBB+ 823,206
250,000 Tustin, CA Improvement Bonds (Assessment District No. 85-1), 8.15% due 9/2/2011 NR/NR 247,812
615,000 Tustin, CA Improvement Bonds (Assessment District No. 85-1), 8.15% due 9/2/2011 NR/NR 633,019
1,000,000 Ukiah, CA Electric Rev., 8% due 6/1/2018 NR/AAA 1,059,640
-----------
Total Municipal Bonds (Cost $44,355,393)--94.7% 45,777,286
Variable Rate Demand Notes (Cost $1,700,000)--3.5% 1,700,000
Other Assets Less Liabilities--1.8% 856,825
-----------
NET ASSETS--100.0% $48,334,111
______________________________ ===========
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Portfolios of Investments (continued) March 31, 1995
CALIFORNIA QUALITY SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
<S> <C> <C> <C>
$2,000,000 California Department of Water Resources Water System Rev. (Central Valley Project),
6 1/8% due 12/1/2013 Aa/AA $1,998,680
2,000,000 California Educational Facilities Authority Rev. (Stanford University), 6 3/4% due 1/1/2013 Aaa/AAA 2,119,580
3,200,000 California Educational Facilities Authority Rev. (University of Southern California Project),
5.80% due 10/1/2015 Aa/AA 3,070,432
3,440,000 California Educational Facilities Authority Rev. (Pomona College), 6% due 2/15/2017 Aa1/AA 3,369,962
4,500,000 California Educational Facilities Authority Rev. (California Institute of Technology),
6% due 1/1/2021 Aaa/AAA 4,470,255
1,500,000 California Health Facilities Financing Authority Health Facility Rev. (Mercy Health System),
9 1/8% due 7/1/2013 A1/A+ 1,547,595
3,000,000 California Health Facilities Financing Authority Health Facility Rev. (Kaiser Permanente),
6 1/2% due 12/1/2020 Aa2/AA 3,035,700
2,000,000 California Health Facilities Financing Authority Insured Hospital Rev.
(Scripps Memorial Hospital), 6 3/8% due 10/1/2022 Aaa/AAA 2,033,420
245,000 California Housing Finance Agency (Housing Revenue Insured Bonds),
8 3/4% due 8/1/2010 Aaa/AAA 258,651
505,000 California Housing Finance Agency (Housing Revenue Insured Bonds),
8 5/8% due 8/1/2015 Aaa/AAA 529,285
2,000,000 California Housing Finance Agency Housing Rev., 5.60% due 8/1/2024 Aaa/AAA 1,816,040
2,850,000 California Housing Finance Agency Home Mortgage Rev., 6 3/4% due 2/1/2025* Aa/AA- 2,899,277
960,000 California Public Capital Improvements Financing Authority (Pooled Projects),
8.10% due 3/1/2018 Aaa/AAA 1,036,800
3,000,000 California Public Works Board Lease Rev. (Correctional Facilities Improvements),
5 3/4% due 9/1/2021 A/A- 2,761,710
7,000,000 California State G.O.'s, 4 3/4% due 9/1/2010 A1/A 6,133,820
3,000,000 California Statewide Communities Development Authority Certificates of Participation
(The Trustees of the J. Paul Getty Trust), 5% due 10/1/2023 Aaa/AAA 2,545,890
5,000,000 Contra Costa Water District, CA, 5 1/2% due 10/1/2019 Aaa/AAA 4,638,950
2,500,000 Eastern Municipal Water District Riverside County, CA Water and Sewer Rev.,
6 3/4% due 7/1/2012 Aaa/AAA 2,730,575
3,000,000 Fresno, CA Sewer System Rev., 5 1/4% due 9/1/2019 Aaa/AAA 2,709,780
2,000,000 Industry, CA G.O.'s, 7 3/8% due 7/1/2015 Aaa/AAA 2,224,240
3,460,000 Los Angeles, CA Wastewater System Rev., 5.80% due 6/1/2021 Aaa/AAA 3,320,424
2,000,000 Los Angeles County Transportation Commission, CA (Sales Tax Rev.),
6 3/4% due 7/1/2018 Aaa/AAA 2,215,060
3,000,000 Los Angeles Department of Water & Power, CA Electric Plant Rev., 6 3/8% due 2/1/2020 Aa/AA 3,055,950
2,000,000 M-S-R Public Power Agency, CA (San Juan Project), 6 7/8% due 7/1/2019 Aaa/AAA 2,085,520
2,000,000 Marin, CA Municipal Water District Water Rev., 5.65% due 7/1/2023 A1/AA 1,836,560
3,000,000 Metropolitan Water District of Southern California Waterworks G.O.'s,
5 3/4% due 3/1/2014 Aaa/AAA 2,889,390
4,500,000 Northern California Power Agency Public Power Rev. (Combustion Turbine Project A-1),
6% due 8/15/2010 Aaa/AAA 4,503,015
4,500,000 Orange County, CA Local Transportation Authority (Measure M Sales Tax Rev.),
6% due 2/15/2009 Aaa/AAA 4,563,090
______________
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
6
<PAGE>
Portfolios of Investments (continued) March 31, 1995
CALIFORNIA QUALITY SERIES (continued)
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
$3,250,000 San Francisco Bay Area Rapid Transit District, CA (Sales Tax Rev.), 6.60% due 7/1/2012 Aaa/AAA $3,398,655
3,000,000 San Francisco, CA (City & County) Airport Commission Rev.
(International Airport), 6.60% due 5/1/2024* Aaa/AAA 3,097,380
3,000,000 San Francisco, CA (City & County) Public Utilities Commission Water Rev.,
6% due 11/1/2015 Aa/AA 2,956,260
2,000,000 Santa Rosa, CA (Sonoma County) Wastewater Rev. (Subregional Wastewater Project),
6 1/2% due 9/1/2022 Aaa/AAA 2,056,520
4,500,000 Southern California Public Power Authority Transmission Project Rev.,
5% due 7/1/2022 Aaa/AAA 3,861,765
5,000,000 University of California Regents (Multiple Purpose Projects), 6 3/8% due 9/1/2024 Aaa/AAA 5,082,700
-----------
Total Municipal Bonds (Cost $96,263,915)--98.1% 96,852,931
Variable Rate Demand Notes (Cost $600,000)--0.6% 600,000
Other Assets Less Liabilities--1.3% 1,265,105
-----------
NET ASSETS--100.0% $98,718,036
===========
</TABLE>
<TABLE>
<CAPTION>
FLORIDA SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
<S> <C> <C> <C>
$ 500,000 Broward County, FL G.O.'s (Environmentally Sensitive Lands Project),
6.90% due 7/1/2009 Aaa/AAA $ 532,405
2,000,000 Broward County, FL Water & Sewer Utility Rev., 6 1/2% due 10/1/2017 Aaa/AAA 2,178,080
2,500,000 Broward County, FL Water & Sewer Utility Rev., 5% due 10/1/2018 Aaa/AAA 2,198,600
1,500,000 Broward County School District, FL G.O.'s, 7 1/8% due 2/15/2008 Aaa/AAA 1,646,190
1,500,000 Citrus County, FL Pollution Control Rev. (Florida Power Corporation Crystal River
Power Plant Project), 6 5/8% due 1/1/2027 A1/A+ 1,550,055
2,000,000 Collier County, FL Water & Sewer Rev., 5 1/4% due 7/1/2021 Aaa/AAA 1,802,760
1,000,000 Dade County, FL Public Facilities Rev. (Jackson Memorial Hospital),
5 1/4% due 6/1/2023 Aaa/AAA 892,350
1,000,000 Dade County, FL Seaport G.O.'s, 6 1/4% due 10/1/2021 Aaa/AAA 1,014,450
2,000,000 Dade County Health Facilities Authority, FL Hospital Rev. (Baptist Hospital
of Miami Project), 5 1/4% due 5/15/2021 Aaa/AAA 1,791,100
1,000,000 Dunes Community Development District, FL Rev. (Intracoastal Waterway Bridge Project),
7% due 2/1/2007 NR/A 1,059,490
1,000,000 Florida Housing Finance Agency (General Mortgage Rev.), 6.35% due 6/1/2014 NR/AAA 1,011,080
1,000,000 Florida Housing Finance Agency Rev. (Single Family Mortgage), 6.55% due 7/1/2014* Aa/AAA 1,017,070
1,000,000 Florida State Board of Education Public Education Capital Outlay, 6 3/4% due 6/1/2021 Aa/AA 1,062,510
1,000,000 Florida State Board of Education Public Education Capital Outlay, 6% due 6/1/2022 Aa/AA 990,630
1,000,000 Florida State Department of Natural Resources Rev. (Save Our Coast),
7.35% due 7/1/2008 Aaa/AAA 1,053,200
1,000,000 Florida State Municipal Power Agency Rev. (St. Lucie Project), 5 1/2% due 10/1/2012 Aaa/AAA 966,210
1,250,000 Florida State Municipal Power Agency Rev. (St. Lucie Project), 5.70% due 10/1/2016 Aaa/AAA 1,219,750
- ---------------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
7
<PAGE>
Portfolios of Investments (continued) March 31, 1995
FLORIDA SERIES (continued)
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
$970,000 Florida State Turnpike Authority Turnpike Rev., 6.35% due 7/1/2022 Aaa/AAA $ 1,051,810
530,000 Florida State Turnpike Authority Turnpike Rev., 6.35% due 7/1/2022 Aaa/AAA 542,211
1,500,000 Gainesville, FL Utilities System Rev., 5 1/2% due 10/1/2013 Aa/AA 1,437,030
2,500,000 Hillsborough County, FL Aviation Authority Rev. (Tampa International Airport),
5 3/8% due 10/1/2023* Aaa/AAA 2,256,425
1,000,000 Hollywood, FL Water & Sewer Rev., 6 7/8% due 10/1/2021 Aaa/AAA 1,116,880
1,050,000 Jacksonville Beach, FL Utilities Rev., 7 1/2% due 10/1/2014 Aaa/AAA 1,115,951
1,500,000 Jacksonville Electric Authority, FL Rev. (St. Johns River Power Park System),
5 1/2% due 10/1/2013 Aa1/AA 1,431,345
750,000 Jacksonville Electric Authority, FL Bulk Power Supply System Rev. (Scherer 4 Project),
6 3/4% due 10/1/2021 Aaa/AA 823,665
2,000,000 Kissimmee Utility Authority, FL Electric System Improvement Rev.,
5 1/4% due 10/1/2018 Aaa/AAA 1,838,200
1,000,000 Naples, FL Hospital Rev. (Naples Community Hospital, Inc. Project), 7% due 10/1/2013 Aaa/AAA 1,055,630
1,000,000 Orange County Health Facilities Authority, FL Rev. (Orlando Regional Medical Center),
6.80% due 10/1/2015 Aaa/AAA 1,067,530
2,000,000 Orlando, FL Utilities Commission Water & Electric Rev., 5 1/2% due 10/1/2026 Aa/AA- 1,851,260
1,000,000 Orlando-Orange County Expressway Authority, FL Expressway Rev., 7 1/2% due 7/1/2016 Aaa/AAA 1,055,630
1,000,000 Osceola County, FL Transportation Rev. (Osceola Parkway Project), 6.10% due 4/1/2017 1,006,860
1,200,000 Palm Beach County, FL Criminal Justice Facilities Rev., 7 1/4% due 6/1/2011 Aaa/AAA 1,342,404
1,500,000 Palm Beach County, FL Water & Sewer Rev., 7 1/8% due 10/1/2009 A1/A+ 1,572,255
1,625,000 Palm Beach County, FL Water & Sewer Rev., 5 1/4% due 10/1/2013 Aaa/AAA 1,505,302
1,000,000 Pensacola Health Facilities Authority, FL Health Facilities Rev. (Daughters of Charity
National Health System--Sacred Heart Hospital of Pensacola), 5 1/4% due 1/1/2011 Aa/NR 915,570
1,000,000 St. Lucie County, FL Utility System Rev., 7 1/8% due 10/1/2017 Aaa/AAA 1,119,400
1,250,000 Volusia County, FL Educational Facilities Authority Rev. (Embry-Riddle Aeronautical
University Project), 6 5/8% due 10/15/2022 NR/AAA 1,297,800
-----------
Total Municipal Bonds (Cost $46,577,985)--95.9% 47,389,088
Variable Rate Demand Notes (Cost $1,000,000)--2.0% 1,000,000
Other Assets Less Liabilities--2.1% 1,040,484
-----------
NET ASSETS--100.0% $49,429,572
===========
</TABLE>
<TABLE>
<CAPTION>
NORTH CAROLINA SERIES
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
<S> <C> <C> <C>
$1,250,000 Appalachian State University, NC Housing & Student Center System Rev.,
5 5/8% due 7/15/2015 Aaa/AAA $1,208,063
1,000,000 Buncombe County, NC Metropolitan Sewerage District (Sewerage System Rev.),
6 3/4% due 7/1/2015 Aaa/NR 1,097,330
600,000 Buncombe County, NC Metropolitan Sewerage District (Sewerage System Rev.),
5 1/2% due 7/1/2022 Aaa/AAA 564,510
- ---------------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
8
<PAGE>
Portfolios of Investments (continued) March 31, 1995
NORTH CAROLINA SERIES (continued)
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
$1,500,000 Charlotte-Mecklenburg Hospital Authority, NC Health Care System Rev.,
6 1/4% due 1/1/2020 Aa/AA $1,516,920
1,000,000 Charlotte, NC Certificates of Participation (Charlotte-Mecklenburg Law Enforcement
Center Project), 5 3/8% due 6/1/2013 Aa1/AA 941,860
2,000,000 Charlotte, NC Water & Sewer G.O.'s, 5.90% due 2/1/2017 Aaa/AAA 2,039,340
365,000 Cleveland County, NC Sanitary District Water G.O.'s, 6.80% due 3/1/2019 Aaa/AAA 389,371
1,150,000 Concord, NC Utilities System Rev., 5 3/4% due 12/1/2017 Aaa/AAA 1,117,271
500,000 Cumberland County, NC Hospital Facility Rev. (Cumberland County Hospital
System, Inc.), 5 1/2% due 10/1/2014 Aaa/AAA 473,680
500,000 Cumberland County, NC Hospital Facility Rev. (Cumberland County Hospital
System, Inc.), 6% due 10/1/2021 Aaa/AAA 496,060
2,000,000 Fayetteville, NC Public Works Commission Rev., 4 3/4% due 3/1/2014 Aaa/AAA 1,723,460
2,500,000 Martin County Industrial Facilities and Pollution Control Financing Authority, NC
(Weyerhaeuser Company Project), 5.65% due 12/1/2023* A2/A 2,245,875
1,000,000 North Carolina Eastern Municipal Power Agency Power System Rev., 5% due 1/1/2021 Aaa/A- 875,520
500,000 North Carolina Educational Facilities Financing Authority Rev. (Duke University Project),
6 3/4% due 10/1/2021 Aa1/AA 521,640
500,000 North Carolina Educational Facilities Financing Authority Rev. (Elon College Project),
6 3/8% due 1/1/2014 NR/AAA 511,535
600,000 North Carolina Housing Finance Agency Rev. (Multi-Family), 5.80% due 7/1/2014 Aa/AA 564,828
1,500,000 North Carolina Housing Finance Agency Rev. (Single Family), 6 1/2% due 3/1/2018 Aa/A+ 1,526,865
250,000 North Carolina Housing Finance Agency Rev. (Multi-Family), 5.90% due 7/1/2026 Aa/AA 231,585
750,000 North Carolina Medical Care Commission Hospital Rev. (North Carolina Baptist
Hospital Project), 6 3/8% due 6/1/2014 Aa/AA- 764,235
500,000 North Carolina Medical Care Commission Hospital Rev. (Carolina Medicorp Project),
5 1/2% due 5/1/2015 Aa/AA 468,245
1,000,000 North Carolina Medical Care Commission Hospital Rev. (Mercy Hospital Project),
6 1/2% due 8/1/2015 NR/A- 1,001,260
1,250,000 North Carolina Medical Care Commission Hospital Rev. (Rex Hospital Project),
6 1/4% due 6/1/2017 A1/A+ 1,250,000
1,500,000 North Carolina Medical Care Commission Hospital Rev. (Carolina Medicorp Project),
6% due 5/1/2021 Aa/AA 1,484,295
1,000,000 North Carolina Medical Care Commission Hospital Rev. (Memorial Mission Hospital
Project), 6% due 10/1/2022 Aaa/AAA 990,690
2,250,000 North Carolina Medical Care Commission Hospital Rev. (Presbyterian Health Services
Corp. Project), 6% due 10/1/2024 Aa/AA 2,222,370
2,000,000 North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., 5% due 1/1/2018 Aaa/AAA 1,739,920
3,000,000 North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., 5% due 1/1/2020 Aaa/AAA 2,682,810
1,100,000 Orange County, NC School District G.O.'s, 4 3/4% due 3/1/2011 Aa1/AA+ 977,812
1,000,000 Orange, NC Water & Sewer Authority Rev., 5.20% due 7/1/2016 Aa/AA 902,310
250,000 Piedmont Triad Airport Authority, NC Airport Rev. Series "A", 6 3/4% due 7/1/2016 Aaa/AAA 264,167
775,000 Raleigh, NC G.O.'s, 6 1/2% due 3/1/2008 Aaa/AAA 829,761
200,000 Transylvania County, NC G.O.'s, 6.80% due 4/1/2007 A/A 216,564
- ---------------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
9
<PAGE>
Portfolios of Investments (continued) March 31, 1995
NORTH CAROLINA SERIES (continued)
Face Ratings Market
Amount Municipal Bonds Moody's/S&P+ Value
-------- ---------------- ----------- --------
$ 500,000 University of North Carolina Chapel Hill Housing System Rev., 6.40% due 11/1/2010 NR/AA- $ 522,430
500,000 University of North Carolina Hospitals at Chapel Hill Rev., 6 3/8% due 2/15/2017 A1/AA- 501,800
1,550,000 Wake County Industrial Facilities & Pollution Control Financing Authority, NC
(Carolina Power & Light), 6.90% due 4/1/2009 A2/A1 1,621,626
1,500,000 Wake County, NC Hospital System Rev. (Wake Medical Center), 5 1/8% due 10/1/2026 Aaa/AAA 1,311,405
500,000 Wayne County, NC G.O.'s, 5.90% due 2/1/2009 A/A+ 507,040
1,440,000 Wilkes County, NC G.O.'s, 5.30% due 6/1/2007 A/A 1,395,965
-----------
Total Municipal Bonds (Cost $39,788,248)--97.4% 39,700,418
Variable Rate Demand Notes (Cost $800,000)--2.0% 800,000
Other Assets Less Liabilities--0.6% 242,346
-----------
NET ASSETS--100.0% $40,742,764
===========
</TABLE>
- ---------------
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
Statements of Assets and Liabilities March 31, 1995
California California North
High-Yield Quality Florida Carolina
Series Series Series Series
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (see portfolios of investments):
Long-term holdings $45,777,286 $96,852,931 $47,389,088 $39,700,418
Short-term holdings 1,700,000 600,000 1,000,000 800,000
----------- ----------- ----------- -----------
47,477,286 97,452,931 48,389,088 40,500,418
Cash 154,841 122,861 78,140 119,482
Interest receivable 892,698 1,486,264 1,184,952 714,745
Receivable for Shares of Beneficial Interest sold 49,940 88,802 25,427 110,834
Expenses prepaid to shareholder service agent 11,845 25,740 11,779 9,679
Other 2,611 3,919 1,895 2,288
----------- ----------- ----------- -----------
Total Assets 48,589,221 99,180,517 49,691,281 41,457,446
----------- ----------- ----------- -----------
Liabilities:
Dividends payable 107,524 198,008 100,427 80,016
Payable for Shares of Beneficial Interest repurchased 76,179 156,020 93,004 575,257
Accrued expenses, taxes, and other 71,407 108,453 68,278 59,409
----------- ----------- ----------- -----------
Total Liabilities 255,110 462,481 261,709 714,682
----------- ----------- ----------- -----------
Net Assets $48,334,111 $98,718,036 $49,429,572 $40,742,764
=========== =========== =========== ===========
Composition of Net Assets:
Shares of Beneficial Interest, at par:
Class A $7,438 $14,908 $6,458 $5,180
Class D 125 147 48 163
Additional paid-in capital 46,947,882 98,402,378 48,554,482 40,886,380
Undistributed/accumulated net realized gain (loss) (43,227) (288,413) 57,481 (61,129)
Net unrealized appreciation (depreciation) of investments 1,421,893 589,016 811,103 (87,830)
----------- ----------- ----------- -----------
Net Assets $48,334,111 $98,718,036 $49,429,572 $40,742,764
=========== =========== =========== ===========
Net Assets:
Class A $47,536,032 $97,757,467 $49,061,147 $39,501,937
Class D $798,079 $960,569 $368,425 $1,240,827
Shares of Beneficial Interest outstanding (Unlimited
shares authorized, except Florida Series 20,000,000
shares authorized; $.001 par value):
Class A 7,438,135 14,908,260 6,457,777 5,179,955
Class D 124,742 146,739 48,467 162,945
Net Asset Value per share:
Class A $6.39 $6.56 $7.60 $7.63
Class D $6.40 $6.55 $7.60 $7.62
</TABLE>
- ---------------
See notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
Statements of Operations For the six months ended March 31, 1995
California California North
High-Yield Quality Florida Carolina
Series Series Series Series
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment income:
Interest $1,644,436 $3,122,581 $1,532,165 $1,227,551
---------- ---------- ---------- ----------
Expenses:
Management fees 119,015 241,197 18,794 7,789
Shareholder account services 37,151 72,849 37,366 39,483
Distribution and service fees 25,027 48,677 56,865 51,714
Custody and related services 10,488 53,151 11,212 18,517
Auditing and legal fees 9,965 10,116 10,767 10,265
Registration 7,873 8,916 9,674 11,012
Trustees' fees and expenses 3,940 3,997 3,621 3,551
Shareholder reports and communications 2,400 5,151 4,514 3,747
Miscellaneous 4,603 5,656 4,193 4,285
---------- ---------- ---------- ----------
Total expenses 220,462 449,710 157,006 150,363
---------- ---------- ---------- ----------
Net investment income 1,423,974 2,672,871 1,375,159 1,077,188
---------- ---------- ---------- ----------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on investments (34,851) (275,173) 58,755 (60,551)
Net change in unrealized appreciation/
depreciation of investments 669,278 3,435,319 1,582,499 1,837,041
---------- ---------- ---------- ----------
Net gain on investments 634,427 3,160,146 1,641,254 1,776,490
---------- ---------- ---------- ----------
Increase in net assets from operations $2,058,401 $5,833,017 $3,016,413 $2,853,678
========== ========== ========== ==========
</TABLE>
- ---------------
See notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
California High-Yield California Quality
Series Series
----------------------------------- -----------------------------------
Six months Year Six months Year
ended ended ended ended
3/31/95 9/30/94 3/31/95 9/30/94
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $ 1,423,974 $ 2,855,053 $ 2,672,871 $ 5,537,990
Net realized gain (loss) on investments (34,851) 296,724 (275,173) 1,699,245
Net change in unrealized appreciation/depreciation
of investments 669,278 (2,966,240) 3,435,319 (13,151,970)
----------- ----------- ----------- ------------
Increase (decrease) in net assets from operations 2,058,401 185,537 5,833,017 (5,914,735)
----------- ----------- ----------- ------------
Distributions to shareholders:
Net investment income:
Class A (1,408,181) (2,841,218) (2,653,382) (5,523,434)
Class D (15,793) (13,835) (19,489) (14,556)
Net realized gain on investments:
Class A -- (651,601) (893,986) (2,473,637)
Class D -- -- (7,846) --
----------- ----------- ----------- ------------
Decrease in net assets from distributions (1,423,974) (3,506,654) (3,574,703) (8,011,627)
----------- ----------- ----------- ------------
Transactions in Shares of Beneficial Interest:*
Net proceeds from sale of shares:
Class A 1,334,875 3,186,756 2,436,428 8,288,928
Class D 235,368 702,222 260,414 742,183
Shares issued in payment of dividends:
Class A 701,385 1,419,731 1,315,413 2,772,508
Class D 11,332 9,395 7,650 5,784
Exchanged from associated Funds:
Class A 1,248,205 459,044 1,366,507 2,025,609
Class D 8,705 2,892 23,785 110,731
Shares issued in payment of gain distributions:
Class A -- 441,866 588,709 1,645,620
Class D -- -- 3,308 --
----------- ----------- ----------- ------------
Total 3,539,870 6,221,906 6,002,214 15,591,363
----------- ----------- ----------- ------------
Cost of shares repurchased:
Class A (3,443,839) (5,032,468) (7,225,727) (10,846,020)
Class D -- (46,242) (77,549) (16,784)
Exchanged into associated Funds:
Class A (937,247) (380,165) (1,975,902) (2,700,925)
Class D (115,904) (2,902) (95,044) (2,000)
----------- ----------- ----------- ------------
Total (4,496,990) (5,461,777) (9,374,222) (13,565,729)
----------- ----------- ----------- ------------
Increase (decrease) in net assets from transactions
in Shares of Beneficial Interest (957,120) 760,129 (3,372,008) 2,025,634
----------- ----------- ----------- ------------
Decrease in net assets (322,693) (2,560,988) (1,113,694) (11,900,728)
Net Assets:
Beginning of period 48,656,804 51,217,792 99,831,730 111,732,458
----------- ----------- ----------- ------------
End of period $48,334,111 $48,656,804 $98,718,036 $ 99,831,730
=========== =========== =========== ============
</TABLE>
- ---------------
*The Trust began offering Class D shares on February 1, 1994.
See notes to financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets (continued)
North Carolina
Florida Series Series
------------------------------------ ------------------------------------
Six months Year Six months Year
ended ended ended ended
3/31/95 9/30/94 3/31/95 9/30/94
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Operations:
Net investment income $1,375,159 $2,878,001 $1,077,188 $2,159,442
Net realized gain (loss) on investments 58,755 200,813 (60,551) 270,319
Net change in unrealized appreciation/depreciation
of investments 1,582,499 (5,275,433) 1,837,041 (4,951,199)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from operations 3,016,413 (2,196,619) 2,853,678 (2,521,438)
----------- ----------- ----------- -----------
Distributions to shareholders:
Net investment income:
Class A (1,368,633) (2,874,294) (1,044,669) (2,133,632)
Class D (6,526) (3,707) (32,519) (25,810)
Net realized gain on investments:
Class A (13,355) (813,447) (67,575) (239,782)
Class D (68) -- (2,384) --
----------- ----------- ----------- -----------
Decrease in net assets from distributions (1,388,582) (3,691,448) (1,147,147) (2,399,224)
----------- ----------- ----------- -----------
Transactions in Shares of Beneficial Interest:*
Net proceeds from sale of shares:
Class A 1,068,978 5,761,739 1,891,886 7,080,082
Class D 109,688 252,386 460,268 1,346,158
Shares issued in payment of dividends:
Class A 574,697 1,194,799 596,020 1,263,936
Class D 4,204 2,701 15,429 8,781
Exchanged from associated Funds:
Class A 712,005 1,958,021 928,538 748,851
Class D 18,953 -- 583,255 --
Shares issued in payment of gain distributions:
Class A 7,441 425,883 51,235 179,478
Class D 60 -- 2,322 --
----------- ----------- ----------- -----------
Total 2,496,026 9,595,529 4,528,953 10,627,286
----------- ----------- ----------- -----------
Cost of shares repurchased:
Class A (4,300,601) (5,704,776) (3,595,484) (3,909,952)
Class D (18,928) (5,020) (603,439) (1,959)
Exchanged into associated Funds
Class A (515,867) (711,426) (934,973) (419,075)
Class D -- -- (561,278) (1,267)
----------- ----------- ----------- -----------
Total (4,835,396) (6,421,222) (5,695,174) (4,332,253)
----------- ----------- ----------- -----------
Increase (decrease) in net assets from transactions
in Shares of Beneficial Interest (2,339,370) 3,174,307 (1,166,221) 6,295,033
----------- ----------- ----------- -----------
Increase (decrease) in net assets (711,539) (2,713,760) 540,310 1,374,371
Net Assets:
Beginning of period 50,141,111 52,854,871 40,202,454 38,828,083
----------- ----------- ----------- -----------
End of period $49,429,572 $50,141,111 $40,742,764 $40,202,454
=========== =========== =========== ===========
</TABLE>
- ---------------
*The Trust began offering Class D shares on February 1, 1994.
See notes to financial statements.
14
<PAGE>
Notes to Financial Statements
1. Seligman Tax-Exempt Series Trust (the "Trust") consists of four separate
series: the "California High-Yield Series," the "California Quality Series,"
the "Florida Series" and the "North Carolina Series." Effective February 1,
1994, the Trust began offering two classes of shares of each Series. All
shares existing prior to February 1, 1994, of each Series have been
classified as Class A shares. Class A shares are sold with an initial sales
charge of up to 4.75% and a continuing service fee of up to 0.25% on an
annual basis. Class D shares are sold without an initial sales charge but
are subject to a higher distribution fee and a contingent deferred sales
load ("CDSL") of 1% imposed on certain redemptions made within one year of
purchase. The two classes of shares of a Series represent interests in the
same portfolio of investments, have the same rights and are generally
identical in all respects except that each class bears its separate
distribution and certain class expenses and has exclusive voting rights with
respect to any matter to which a separate vote of any class is required.
2. Significant accounting policies followed, all in conformity with
generally accepted accounting principles, are given below:
a. All tax-exempt securities and other short-term holdings maturing in more
than 60 days are valued based upon quotations provided by an independent
pricing service or, in their absence, at fair value determined in accordance
with procedures approved by the Trustees. Short-term holdings maturing in 60
days or less are generally valued at amortized cost.
b. There is no provision for federal income or excise tax. Each Series has
elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain realized.
Dividends are declared daily and paid monthly.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Interest income is recorded on the accrual basis. The Trust
amortizes original issue discounts and premiums paid on purchases of
portfolio securities. Discounts other than original issue discounts are not
amortized.
d. All income, expenses (other than class-specific expenses), and realized
and unrealized gains or losses are allocated daily to each class of shares
based upon the relative proportion of the value of settled shares
outstanding of each class. Class-specific expenses, which include
distribution and service fees and any other items that can be specifically
attributed to a particular class, are charged directly to such class.
e. The treatment for financial statement purposes of distributions made
during the year from net investment income or net realized gains may differ
from their ultimate treatment for federal income tax purposes. These
differences are caused primarily by differences in the timing of the
recognition of certain components of income, expense, and capital gain for
federal income tax purposes. Where such differences are permanent in nature,
they are reclassified in the components of net assets based on their
ultimate characterization for federal income tax purposes. Any such
reclassifications will have no effect on net assets, results of operations,
or net asset value per share of any Series of the Trust.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended March 31, 1995, were as follows:
Series Purchases Sales
- ------ ---------- ------
California High-Yield $3,511,904 $ 4,200,739
California Quality 7,273,860 12,519,052
Florida 1,000,000 3,723,110
North Carolina 737,250 1,963,615
At March 31, 1995, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and
the tax basis gross unrealized appreciation and depreciation of portfolio
securities were as follows:
Total Total
Unrealized Unrealized
Series Appreciation Depreciation
- ------ ------------ -----------
California High-Yield $1,867,607 $ 445,714
California Quality 3,054,169 2,465,153
Florida 1,751,668 940,565
North Carolina 955,122 1,042,952
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs
of the Trust and provides the necessary personnel and facilities.
Compensation of all officers of the Trust, all trustees of the Trust who are
employees or consultants of the
15
<PAGE>
Notes to Financial Statements (continued)
Manager, and all personnel of the Trust and the Manager is paid by the Manager.
The Manager's fee is calculated daily and payable monthly, equal to 0.50% per
annum of each Series' average daily net assets. For the six months ended
March 31, 1995, the Manager, at its discretion, waived a portion of its fees
for the Florida and North Carolina Series equal to $102,986 and $90,443,
respectively. The management fee reflected in the statements of operations
represent 0.08% and 0.04%, respectively, per annum of their average net assets.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of each Series' shares and an affiliate of the Manager,
received the following commissions after concessions were paid to dealers
for sale of Class A shares:
Seligman
Financial Services' Dealer
Series Commissions Concessions
- ------ ------------------ ----------
California High-Yield $ 4,139 $31,592
California Quality 10,400 75,454
Florida 5,035 38,365
North Carolina 8,533 63,687
The Trust has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to Class A shares under which service
organizations can enter into agreements with the Distributor and receive
continuing fees of up to 0.25% on an annual basis, payable quarterly, of the
average daily net assets of the Class A shares attributable to the
particular service organizations for providing personal services and/or the
maintenance of shareholder accounts. The Distributor charges such fees to
the Trust pursuant to the Plan. For the six months ended March 31, 1995, for
the California High-Yield, California Quality, Florida, and North Carolina
Series, fees paid aggregated $21,846, $44,387, $55,487, and $44,671,
respectively, or 0.09%, 0.09%, 0.23%, and 0.24%, respectively, per annum of
average daily net assets.
The Trust has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive
continuing fees for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of the average daily
net assets of the Class D shares for which the organizations are
responsible, and fees for providing other distribution assistance of up to
0.75% on an annual basis of such average daily net assets. Such fees are
paid monthly by the Trust to the Distributor pursuant to the Plan. For the
six months ended March 31, 1995, fees paid amounted to $3,181, $4,290,
$1,378, and $7,043, or 1% per annum of the average daily net assets of Class
D shares of the California High-Yield, California Quality, Florida, and
North Carolina Series, respectively.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions of Class D shares occurring within one year of purchase. For the
six months ended March 31, 1995, such charges amounted to $566 for the
California High-Yield Series, $195 for the California Quality Series, and
$276 for the North Carolina Series.
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost for shareholder account services the following
amounts:
Series
- -----
California High-Yield $37,151
California Quality 72,849
Florida 37,366
North Carolina 39,483
Certain officers and trustees of the Trust are officers or directors of the
Manager, the Distributor, and/or Seligman Data Corp.
Fees of $13,000 were incurred by the Trust for the legal services of
Sullivan & Cromwell, a member of which firm is a trustee of the Trust.
The Trust has a compensation agreement under which trustees who receive fees
may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The cost of such fees and interest is included in trustees' fees
and expenses, and the accumulated balances thereof at March 31, 1995 were as
follows:
Series
- ------
California High-Yield $22,151
California Quality 22,151
Florida 9,628
North Carolina 6,297
16
<PAGE>
5. Class-specific expenses charged to Class A and Class D during the six
months ended March 31, 1995, which are included in the corresponding captions
of the Statements of Operations, were as follows:
<TABLE>
<CAPTION>
Shareholder
Distribution reports and
Series and service fees Registration communications
- ------ ---------------- -------------- ------------------
<S> <C> <C> <C>
California High-Yield:
Class A $21,846 $1,033 $497
Class D 3,181 273 3
California Quality:
Class A 44,387 1,032 744
Class D 4,290 310 11
Florida:
Class A 55,487 754 351
Class D 1,378 161 5
North Carolina:
Class A 44,671 1,577 342
Class D 7,043 711 14
</TABLE>
6. Transactions in Shares of Beneficial Interest were as follows:*
<TABLE>
<CAPTION>
California High-Yield Series California Quality Series
-------------------------------------- ------------------------------------
Six months Year Six months Year
ended ended ended ended
3/31/95 9/30/94 3/31/95 9/30/94
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Sale of shares:
Class A 213,630 487,989 385,517 1,210,817
Class D 37,537 108,907 41,989 112,971
Shares issued in payment of dividends:
Class A 113,078 218,487 210,857 409,496
Class D 1,825 1,471 1,227 887
Exchanged from associated Funds:
Class A 203,057 70,262 219,019 294,395
Class D 1,373 452 3,855 16,307
Shares issued in payment
of gain distributions:
Class A -- 66,949 100,634 234,753
Class D -- -- 566 --
---------- ---------- ---------- ----------
Total 570,500 954,517 963,664 2,279,626
---------- ---------- ---------- ----------
Shares repurchased:
Class A (556,258) (772,412) (1,169,090) (1,614,125)
Class D -- (7,290) (12,351) (2,585)
Exchanged into associated Funds:
Class A (152,801) (58,674) (322,585) (400,621)
Class D (19,079) (454) (15,814) (313)
---------- ---------- ---------- ----------
Total (728,138) (838,830) (1,519,840) (2,017,644)
---------- ---------- ---------- ----------
Increase (decrease) in shares (157,638) 115,687 (556,176) 261,982
========== ========== ========== ==========
</TABLE>
17
<PAGE>
Note 6. (continued)
<TABLE>
<CAPTION>
Florida Series North Carolina Series
-------------------------------------- --------------------------------------
Six months Year Six months Year
ended ended ended ended
3/31/95 9/30/94 3/31/95 9/30/94
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Sale of shares:
Class A 145,815 734,617 261,450 892,418
Class D 14,637 33,552 65,260 175,027
Shares issued in payment of dividends:
Class A 78,865 154,793 82,622 163,227
Class D 579 362 2,131 1,170
Exchanged from associated Funds:
Class A 97,184 252,598 129,846 95,126
Class D 2,491 -- 82,219 --
Shares issued in payment
of gain distributions:
Class A 1,075 53,369 7,647 22,323
Class D 9 -- 347 --
---------- ---------- ---------- ----------
Total 340,655 1,229,291 631,522 1,349,291
---------- ---------- ---------- ----------
Shares repurchased:
Class A (594,551) (744,532) (502,947) (508,245)
Class D (2,491) (672) (79,241) (262)
Exchanged into associated Funds:
Class A (72,396) (92,862) (132,338) (54,138)
Class D -- -- (83,532) (174)
---------- ---------- ---------- ----------
Total (669,438) (838,066) (798,058) (562,819)
---------- ---------- ---------- ----------
Increase (decrease) in shares (328,783) 391,225 (166,536) 786,472
========== ========== ========== ==========
</TABLE>
- ---------------
*The Trust began offering Class D shares on February 1, 1994.
18
<PAGE>
(This page intentionally left blank.)
19
<PAGE>
Financial Highlights
The Trust's financial highlights are presented below. The per share
operating performance data is designed to allow investors to trace the
operating performance, on a per share basis, from a Series' beginning net
asset value to the ending net asset value so that they can understand what
effect the individual items have on their investment assuming it was held
throughout the period. Generally, the per share amounts are derived by
converting the actual dollar amounts incurred for each item as disclosed in
the financial statements to their equivalent per share amounts using average
shares outstanding.
The total return based on net asset value measures a Series' performance
assuming investors purchased shares at net asset value as of the beginning
of the period, reinvested dividends and capital gains paid at net asset
value, and then sold their shares at the net asset value per share on the
last day of the period. The total return computations do not reflect any
sales charges investors may incur in purchasing or selling shares of the
Trust. The total returns for periods of less than one year are not
annualized.
<TABLE>
<CAPTION>
Per Share Operating Performance:
Net Increase
Net Asset Realized & (Decrease)
Value at Net Unrealized from
Fiscal Year Beginning Investment Investment Investment
or Period of Period Income* Gain (Loss) Operations
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
California High-Yield Series
Six months ended 3/31/95 $6.30 $0.19 $0.09 $0.28
Year ended 9/30/94 6.73 0.37 (0.34) 0.03
Year ended 9/30/93 6.65 0.39 0.28 0.67
Year ended 9/30/92 6.50 0.41 0.16 0.57
Year ended 9/30/91 6.18 0.42 0.33 0.75
Year ended 9/30/90 6.36 0.42 (0.07) 0.35
California Quality Series
Six months ended 3/31/95 6.39 0.17 0.23 0.40
Year ended 9/30/94 7.28 0.35 (0.73) (0.38)
Year ended 9/30/93 6.85 0.37 0.54 0.91
Year ended 9/30/92 6.65 0.40 0.22 0.62
Year ended 9/30/91 6.22 0.40 0.46 0.86
Year ended 9/30/90 6.47 0.40 (0.13) 0.27
Florida Series
Six months ended 3/31/95 7.34 0.21 0.26 0.47
Year ended 9/30/94 8.20 0.42 (0.74) (0.32)
Year ended 9/30/93 7.56 0.46 0.65 1.11
Year ended 9/30/92 7.37 0.47 0.19 0.66
Year ended 9/30/91 6.90 0.43 0.47 0.90
Year ended 9/30/90 6.99 0.45 (0.09) 0.36
North Carolina Series
Six months ended 3/31/95 7.29 0.20 0.35 0.55
Year ended 9/30/94 8.22 0.41 (0.87) (0.46)
Year ended 9/30/93 7.61 0.43 0.63 1.06
Year ended 9/30/92 7.39 0.44 0.22 0.66
Year ended 9/30/91 7.04 0.45 0.35 0.80
8/27/90**--9/30/90 7.14 0.03 (0.10) (0.07)
Class D:
California High-Yield Series
Six months ended 3/31/95 6.31 0.16 0.09 0.25
2/1/94**--9/30/94 6.67 0.21 (0.36) (0.15)
California Quality Series
Six months ended 3/31/95 6.38 0.14 0.23 0.37
2/1/94**--9/30/94 7.13 0.19 (0.75) (0.56)
Florida Series
Six months ended 3/31/95 7.34 0.17 0.26 0.43
2/1/94**--9/30/94 8.10 0.24 (0.76) (0.52)
North Carolina Series
Six months ended 3/31/95 7.29 0.17 0.34 0.51
2/1/94**--9/30/94 8.17 0.23 (0.88) (0.65)
</TABLE>
<PAGE>
Financial Highlight (Continued)
<TABLE>
<CAPTION>
Per Share Operating Performance:
Distributions Net Increase Net Asset
Dividends from (Decrease) in Value at
Fiscal Year Paid or Net Gain Net Asset End
or Period Declared Realized Value of Period
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
California High-Yield Series
Six months ended 3/31/95 ($0.19) $ -- $0.09 $6.39
Year ended 9/30/94 (0.37) (0.09) (0.43) 6.30
Year ended 9/30/93 (0.39) (0.20) 0.08 6.73
Year ended 9/30/92 (0.41) (0.01) 0.15 6.65
Year ended 9/30/91 (0.42) (0.01) 0.32 6.50
Year ended 9/30/90 (0.42) (0.11) (0.18) 6.18
California Quality Series
Six months ended 3/31/95 (0.17) (0.06) 0.17 6.56
Year ended 9/30/94 (0.35) (0.16) (0.89) 6.39
Year ended 9/30/93 (0.37) (0.11) 0.43 7.28
Year ended 9/30/92 (0.40) (0.02) 0.20 6.85
Year ended 9/30/91 (0.40) (0.03) 0.43 6.65
Year ended 9/30/90 (0.40) (0.12) (0.25) 6.22
Florida Series
Six months ended 3/31/95 (0.21) -- 0.26 7.60
Year ended 9/30/94 (0.42) (0.12) (0.86) 7.34
Year ended 9/30/93 (0.46) (0.01) 0.64 8.20
Year ended 9/30/92 (0.47) -- 0.19 7.56
Year ended 9/30/91 (0.43) -- 0.47 7.37
Year ended 9/30/90 (0.45) -- (0.09) 6.90
North Carolina Series
Six months ended 3/31/95 (0.20) (0.01) 0.34 7.63
Year ended 9/30/94 (0.41) (0.05) (0.92) 7.30
Year ended 9/30/93 (0.43) (0.02) 0.61 8.22
Year ended 9/30/92 (0.44) -- 0.22 7.61
Year ended 9/30/91 (0.45) -- 0.35 7.39
8/27/90**--9/30/90 (0.03) -- (0.10) 7.04
Class D:
California High-Yield Series
Six months ended 3/31/95 (0.16) -- 0.09 6.40
2/1/94**--9/30/94 (0.21) -- (0.36) 6.31
California Quality Series
Six months ended 3/31/95 (0.14) (0.06) 0.17 6.55
2/1/94**--9/30/94 (0.19) -- (0.75) 6.38
Florida Series
Six months ended 3/31/95 (0.17) -- 0.26 7.60
2/1/94**--9/30/94 (0.24) -- (0.76) 7.34
North Carolina Series
Six months ended 3/31/95 (0.17) (0.01) 0.33 7.62
2/1/94**--9/30/94 (0.23) -- (0.88) 7.29
</TABLE>
*During the periods stated, the Manager, at its discretion, waived all or
a portion of its fees and, in some cases, reimbursed certain expenses for
the Florida and North Carolina Series. The adjusted net investment income
per share and adjusted ratios reflect what the results would have been had
the Manager not waived fees and reimbursed expenses.
**Commencement of operations.
20
<PAGE>
Financial Highlights (Continued)
<TABLE>
<CAPTION>
Per Share Operating Performance:
Ratio of Net
Total Return Ratio of Investment
Based on Expenses to Income
Fiscal Year Net Asset Average to Average Portfolio
or Period Value Net Assets* Net Assets* Turnover
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
California High-Yield Series
Six months ended 3/31/95 4.50% 0.91%+ 6.00%+ 7.72%
Year ended 9/30/94 0.41 0.85 5.74 8.36
Year ended 9/30/93 10.66 0.88 5.94 7.70
Year ended 9/30/92 9.00 0.82 6.20 45.50
Year ended 9/30/91 12.53 0.83 6.67 5.13
Year ended 9/30/90 5.57 0.89 6.68 17.66
California Quality Series
Six months ended 3/31/95 6.57 0.92+ 5.55+ 7.64
Year ended 9/30/94 (5.46) 0.81 5.20 22.16
Year ended 9/30/93 13.92 0.82 5.30 15.67
Year ended 9/30/92 9.56 0.78 5.86 34.25
Year ended 9/30/91 14.35 0.78 6.19 20.11
Year ended 9/30/90 4.22 0.83 6.31 28.61
Florida Series
Six months ended 3/31/95 6.52 0.64+ 5.65+ 2.12
Year ended 9/30/94 (3.99) 0.42 5.49 6.17
Year ended 9/30/93 15.21 0.23 5.82 16.42
Year ended 9/30/92 9.24 0.17 6.32 12.62
Year ended 9/30/91 13.41 0.90 6.00 --
Year ended 9/30/90 5.23 0.65 6.44 13.08
North Carolina Series
Six months ended 3/31/95 7.64 0.74+ 5.52+ 1.94
Year ended 9/30/94 (5.80) 0.44 5.29 15.61
Year ended 9/30/93 14.46 0.23 5.44 3.13
Year ended 9/30/92 9.23 0.14 5.83 12.51
Year ended 9/30/91 11.97 0.07 6.10 --
8/27/90**--9/30/90 (1.40) 0.94+ 4.48+ --
Class D:
California High-Yield Series
Six months ended 3/31/95 3.99 1.92+ 4.92+ 7.72
2/1/94**--9/30/94 (2.47) 1.74+ 4.73+ 8.36++
California Quality Series
Six months ended 3/31/95 6.07 1.91+ 4.51+ 7.64
2/1/94**--9/30/94 (8.01) 1.77+ 4.39+ 22.16++
Florida Series
Six months ended 3/31/95 6.06 1.51+ 4.69+ 2.12
2/1/94**--9/30/94 (6.64) 1.29+ 4.61+ 6.17++
North Carolina Series
Six months ended 3/31/95 7.22 1.56+ 4.58+ 1.94
2/1/94**--9/30/94 (8.15) 1.27+ 4.49+ 15.61++
</TABLE>
<PAGE>
Financial Highlights (Continued)
<TABLE>
<CAPTION>
Per Share Operating Performance: Adjusted
Adjusted Ratio of
Net Assets Adjusted Net Ratio of Net Investment
at End of Investment Expenses to Income
Fiscal Year Period Income Average Net to Average
or Period (000's omitted) per Share* Assets* Net Assets*
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
California High-Yield Series
Six months ended 3/31/95 $47,536
Year ended 9/30/94 48,007
Year ended 9/30/93 51,218
Year ended 9/30/92 49,448
Year ended 9/30/91 49,172
Year ended 9/30/90 49,312
California Quality Series
Six months ended 3/31/95 97,757
Year ended 9/30/94 99,020
Year ended 9/30/93 111,732
Year ended 9/30/92 93,557
Year ended 9/30/91 77,884
Year ended 9/30/90 61,854
Florida Series
Six months ended 3/31/95 49,061 $0.19 1.06%+ 5.23%+
Year ended 9/30/94 49,897 0.38 1.00 4.91%
Year ended 9/30/93 52,855 0.40 1.03 5.01
Year ended 9/30/92 37,957 0.41 1.02 5.47
Year ended 9/30/91 28,173 0.42 1.15 5.75
Year ended 9/30/90 24,025 0.44 0.90 6.20
North Carolina Series
Six months ended 3/31/95 39,502 0.19 1.20%+ 5.06%+
Year ended 9/30/94 38,920 0.35 1.13 4.60
Year ended 9/30/93 38,828 0.35 1.22 4.45
Year ended 9/30/92 21,836 0.34 1.40 4.57
Year ended 9/30/91 9,255 0.22 3.22 2.96
8/27/90**--9/30/90 1,377 0.01 4.48+ 1.04+
Class D:
California High-Yield Series
Six months ended 3/31/95 798
2/1/94**--9/30/94 650
California Quality Series
Six months ended 3/31/95 961
2/1/94**--9/30/94 812
Florida Series
Six months ended 3/31/95 368 0.16 1.93+ 4.27+
2/1/94**--9/30/94 244 0.21 1.84+ 4.06+
North Carolina Series
Six months ended 3/31/95 1,241 0.15 2.02+ 4.12+
2/1/94**--9/30/94 1,282 0.20 1.95+ 3.82+
</TABLE>
+Annualized.
++For the year ended September 30, 1994.
See notes to financial statements.
21
<PAGE>
Report of Independent Auditors
The Trustees and Shareholders,
Seligman Tax-Exempt Series Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of the California High-Yield,
California Quality, Florida and North Carolina Series of Seligman Tax-Exempt
Series Trust as of March 31, 1995, the related statements of operations for
the six months then ended and of changes in net assets for the six months
then ended and for the year ended September 30, 1994, and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of March 31, 1995 by correspondence with the Trust's
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the California
High-Yield, California Quality, Florida and North Carolina Series of
Seligman Tax-Exempt Series Trust as of March 31, 1995, the results of their
operations, the changes in their net assets, and the financial highlights
for the respective stated periods, in conformity with generally accepted
accounting principles.
/s/ Deloitte & Touche LLP
---------------------
DELOITTE & TOUCHE LLP
New York, New York
April 28, 1995
22
<PAGE>
Trustees
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
Alice S. Ilchman 3
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Trustee, The Rockefeller Foundation
John E. Merow
Partner, Sullivan & Cromwell, Attorneys
Betsy S. Michel 2
Director or Trustee,
Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
Douglas R. Nichols, Jr. 2
Management Consultant
James C. Pitney 3
Partner, Pitney, Hardin, Kipp & Szuch, Attorneys
Director, Public Service Enterprise Group
James Q. Riordan 3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Herman J. Schmidt 2
Director, H.J. Heinz Company
Director, HON Industries, Inc.
Director, MAPCO, Inc.
Ronald T. Schroeder 1
President
Managing Director, J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson 2
Executive Vice President and Director, Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
Brian T. Zino 1
Managing Director, J. & W. Seligman & Co. Incorporated
- ---------------
Member: 1 Executive Committee; 2 Audit Committee; 3 Trustee Nominating Committee
<PAGE>
Executive Officers
William C. Morris
Chairman
Ronald T. Schroeder
President
Thomas G. Moles
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
Manager
J. & W. Seligman & Co.
Incorporated
100 Park Avenue
New York, NY 10017
General Counsel
Sullivan & Cromwell
Independent Auditors
Deloitte & Touche LLP
General Distributor
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
Shareholder Service Agent
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
Important Telephone Numbers
(800) 221-2450 Shareholder Services
(800) 622-4597 24-Hour Automated
Telephone
Access Service
23
<PAGE>
Seligman Financial Services, Inc.
an affiliate of
Seligman JWS Monogram Logo Goes Here
J. & W. SELIGMAN & CO.
INCORPORATED
established 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of shareholders or those
who have received the offering prospectus covering shares of Beneficial
Interest of Seligman Tax-Exempt Series Trust, which contains information
about the sales charges, management fee, and other costs. Please read the
prospectus carefully before investing or sending money.
TEB3 3/95
